국제무역거래에서의 대금의 결제방법은 케르베로스의 세 개의 머리인가?

김인호 법무부 2011 선진상사법률연구 Vol.- No.55

The letter of credit has emerged to address the risks of the seller and the buyer associated with the international sale of goods. It also has promoted the development of international trade. The letter of credit supports a commercial transaction, generally the sale of goods, and is the intended conduit for payment, by the applicant to the beneficiary, of the price. The drawing must be accompanied by documents relating to the underlying commercial transaction, such as invoices and shipping documents. When a letter of credit is issued and accompanied by a draft(bill of exchange) drawn by the beneficiary on the issuer of the letter of credit, to effect payment there are three heads of Kerberos: a claim based on the letter of credit, another based on the draft, and another based on the underlying sale contract. There appears to be some reluctance to use the negotiable draft and uncertainty concerning its utility. The draft might generate risk of the documentary discrepancies in the document examination process, which plagues the letter of credit. Once the draft is drawn and annexed to the letter of credit, the latter is anyway to serve the former by backing the former. The beneficiary or the negotiating bank brings suit against the issuing bank to recover the balance secured by the letter of credit. The issuing bank is obliged to honor a draft drawn on a letter of credit by the beneficiary. Payments under the letter of credit are made by the use of the draft as an internal part of the transaction. The issuing bank's obligation is separate and independent from any obligation of the account party to the beneficiary under the underlying sale contract. A claim based on the draft should be filed in advance before a claim based on the letter of credit. Then a claim could be filed based on the underlying sale contract. This issue should be governed by the applicable law determined by the conflict of laws rules. When more than one among above three claims are joined in one suit, the procedural handling of claim joinder should be dictated by the procedural law. 신용장은 국제무역거래에서 매수인과 매도인 상호간의 신용에 대한 위험을 극복하고 국제무역을 활성화하는 기능을 하여왔다. 국제무역거래에서의 대금결제수단으로 신용장이 발행되고 이에 기하여 환어음이 발행되어 선적서류와 함께 신용장에 첨부되어 대금이 결제되는 경우에 발생하는 세 가지 법률관계 즉 매매계약에 기한 법률관계, 신용장에 기한 법률관계 및 환어음에 기한 법률관계는 케르베로스의 세 머리처럼 국제무역대금결제라는 하나의 목적을 실현하기 위하여 존재한다. 환어음에 기한 법률관계와 신용장에 기한 법률관계는 별도로 존재한다고 보는 것은 기교적이고 국제무역대금결제라는 하나의 목적을 실현하는 각각의 요건에 불과하고 실제로 두 법률관계의 의무자가 동일한 신용장개설은행이므로 두 법률관계를 별도로 인정할 필요도 없다. 다만, 두 법률관계를 각각 판단하여야만 하는 경우에는 환어음에 기한 법률관계가 신용장에 기한 법률관계에 우선하여 판단되어야 한다. 신용장에 환어음 및 선적서류가 첨부되어 국제무역대금결제에 사용되는 경우에 일단 환어음이 발행되어 첨부되면 신용장이나 선적서류는 환어음의 지급을 담보해주는 역할을 하게 되므로 환어음에 기한 법률관계가 우선적으로 기능을 하고 신용장에 기한 법률관계나 원인관계인 매매계약에 기한 법률관계는 차례로 보충적인 기능을 할 뿐이라고 보는 것이 거래관련 당사자의 의사에 부합하는 해석이다. 위 법률관계가 각각 따로 병존하는지와 만일 병존한다면 어느 법률관계가 우선적으로 기능하는지 하는지를 판단함에 있어서 그 준거법에 따라 달라질 수 있으므로 준거법의 판단이 선행되어야 할 것이다. 게다가 절차법적으로 소송상 청구함에 있어서 위 세 가지 법률관계에 기한 청구가 각각 별개의 청구를 구성하는지 및 그 청구간의 청구의 병합 관계는 어떠한지를 살펴보아야 한다. 실체적 준거법과 절차법적 측면에서 국제무역대금결제라는 하나의 목적을 위하여 존재하는 위 세 가지 법률관계의 상호관계 및 우선순위를 법률적으로 검토하고 분석함에 있어서 국제무역거래의 실무의 현실에서 얼마나 타당할 수 있는지를 고려하여야 한다.

국제거래에서 보증신용장의 사기의 지급예외(Fraud Exception)에 관한 최근 미국 연방법원 판결에 대한 고찰 : Archer Daniels Midland Co. and ADM Rice, Inc. v. JP Morgan Chase Bank, N.A.

김상만 법무부 2016 선진상사법률연구 Vol.- No.73

A standby letter of credit is generally used to secure the seller’s performance of the contractual obligations in an international trade, while a documentary credit is used to secure the buyer’s payment obligations. An standby letter of credit is, in reality, the same as an independent guarantee (aka a demand guarantee, an independent bank guarantee). An independent guarantee has been used in the European countries, but an standby letter of credit was originated in the U.S. because the U.S. banks were barred from issuing a guarantee. Therefore, a standby letter of credit and an independent guarantee is legally the same device. A standby letter of credit shares independence principle and abstractness with a documentary credit. An issuing bank’s obligation under a standby letter of credit is separate from and independent of the underlying contract. An issuing bank shall honour a demand complying with the requirements of the standby letter of credit alone regardless of the underlying contract. This independence principle promotes the use of a standby letter of credit. However, when there is fraud or forgery, the fraud exception to the independence principle applies. UCP 600, ISP 98, and URDG 758 which may be applicable to a standby letter of credit have no specific provisions on the fraud exception. The UCC has specific provisions on it in article 5-109, and the U.S. courts have allowed fraud exception of a standby letter of credit in many cases. Recently the U.S. Federal court granted fraud exception in Archer Daniels Midland Co. and ADM Rice, Inc. v. JP Morgan Chase Bank, N.A. case (2011). In the instant case, the court granted a preliminary injunction and enjoins the issuing bank (first instructing bank) from rendering payment to the second issuing bank on the ground of fraud in the transaction. 국제거래에서는 수입자의 대금지급에 대한 담보장치로 화환신용장(documentary credit)이 사용되고, 수출자의 계약이행에 대한 담보장치로 보증신용장(standby letter of credit)이 사용되는데, 이러한 보증신용장은 실제로 독립보증(또는 청구보증, 독립적 은행보증)과 동일하다. 독립보증은 유럽국가에서 사용되고, 보증신용장은 미국에서 시작되었는데, 그 이유는 미국에서는 당시 은행의 보증서 발급이 금지되었기 때문이다. 보증신용장에도 화환신용장의 가장 기본적인 성격인 “독립성”과 “추상성”이 적용된다. 보증신용장에서 개설은행의 의무는 기본계약과는 별개·독립적이고, 개설은행은 기본계약과는 무관하게 보증신용장의 요건에 일치하는 지급청구에 대하여 결제한다. 보증신용장의 독립성은 보증신용장의 담보력을 강화하여 그 사용을 촉진시킨다. 그러나 기본거래에 사기가 있는 경우 독립성의 예외로서 “사기의 지급예외(fraud exception)”가 적용된다. UCP 600, ISP 98 및 URDG 758은 보증신용장에 적용이 가능한 국제적 통일규칙인데, 사기의 지급예외에 대한 규정이 없다. 미국 통일상법전은 사기의 지급예외에 대한 규정(제5편 제109조)을 두고 있고, 미국 법원들은 다수의 판결에서 사기의 지급예외를 인정해 왔다. 그리고 미국 연방법원은 최근에 Archer Daniels Midland Co. and ADM Rice, Inc. v. JP Morgan Chase Bank, N.A. 판결 (2011)에서 사기의 지급예외를 인정하였다. 대상 판결은 구상보증신용장(counter standby letter of credit) 관련 사건으로 1차 지시은행(구상보증신용장 개설은행)은 2차 개설은행(주된 보증서 개설은행)의 지급청구에 대하여 주된 보증서의 지급청구요건이 충족되었는지 별도로 확인할 의무가 없다고 판단하였다. 그러나 기본거래에 사기가 있는 경우 2차 개설은행의 지급청구에 대하여도 수출자의 지급금지가처분신청을 인용하였다.

전자무역 : 전자신용장의 활용범위와 “전자화” 정도에 대한 연구: 실무자적 관점을 중심으로

정용균 ( Yong Kyun Chung ),정재연 ( Jae Yeon Jeong ) 한국통상정보학회 2013 통상정보연구 Vol.15 No.2

본 연구는 전자신용장의 활용범위와 전자화 정도에 대하여 연구한 논문이다. 이를 위하여 본 연구는 두가지 방법론을 활용하였다. 첫째, 우리나라 국민경제 전체의 거시적 차원에서 전자신용장의 전자화 정도를 분석하였다. 둘째, 신용장결제방식에 결정적인 역할을 수행하는 개별 은행들을 선정하고, 이들 개별은행의 미시적 차원에서 전자신용장의 할용과 전자화정도를 분석하였다. 본 연구는 국내 4대 시중은행 중 두 곳에서 자료를 받아 분석하였다. 전자신용장의 활용정도를 분석하기 위한 지표로는 EDI신용장과 e-L/C, 그리고 전자선하증권을 기준으로 하였다. 연구결과 e-L/C와 e-B/L은 활용도가 매우 미미하게 나타났으나, EDI신용장의 경우는 거시적 차원이나 미시적 차원 모두에서 상당히 활용되고 있는 것으로 나타났다. 한편 중소기업 차원에서 신용장의 전자화를 촉진하기 위해서는 시스템 구축비용을 지원하는 것이 필요한 것으로 분석된다. This paper investigates the extent and scope of electronization of Letter of Credit and examines the obstacles in the course of electronization of Letter of Credit. For this purpose, this paper adopts two track methodologies. First, we study the eceltronization of Letter of Credit in the macro perspective. It means that we analyze the scope and the extend of electronization of electronic Letter of Credit in the macro perspective. It means that we analyze the scope and extent of electronization of Letter of Credit in the macro perspective. It means that we analyze the scope and the extent of electronization of electronic Letter of Credit in the national economy as a whole. Second, we utilize the case study approach to examine the electronization of Letter of Credit in micro perspective. In order words we examine individual commercial banks in Korea. For this purpose, we analyze the data from two commercial banks out of four largest domestic banks in Korea. For example, we select two commercial banks in Korea and ask current status of electronization of Letter of Credit, I,e, the utilization of EDI L/C, e-L/C, and e-B.L. A major finding of our study is that the extent of electronization is not negligible in micro perspective as well as in macro perspective. In micro perspective, two commercial banks utilize EDI letter of credit in a critical sense. On the other hand, they seldom uses e-L/C and e-B/L in international transaction. This study shows that major bottlenecks for the electronization of Letter of Credit are pessimistic perception of SME entrepreneurs toward the electronization of Letter of Credit and the high costs of system building. We conclude that unlike superficial perception, there is a considerable progress toward the electronization of Letter of Credit in micro perspective.

신용장관련서류제시와 검사에 관한 연구

김백영(Kim BackYoung) 동아대학교 법학연구소 2005 東亞法學 Vol.- No.37

According to the uniform custom and practice for documentary credits(1993 revision) article 42a, all credit must stipulate an expiry date and place for presentation of documents for payment, acceptance, or with the exception of freely negotiable credits, a place for presentation of documents for negotiation. an expiry date stipulated for payment, accptance or negotiation will be construed to express an expiry date for presentation of documents. and article 43a, in addition stipulating an expiry date for presentation of documents, every credit which calls for a transport document(s) should also stipulate a specified period of time after the date of shipment during which presentation must be made in complince with the terms and conditions of the credit, if nosuch period of time is stipulated, banks will not accept documents presented to them later than 21 days after the date of shipment. in any event, documents must be presented not later than the expiry date of the credit. Up each the uniform customs and practice for documentary credits, regarding the presentation duration of terms of validity and the transportation relation document of the letter of credit for a document presentation case of the general buying letter of credit from the document presentation place which is provided in the letter of credit where that terms of validity and standard of presentation duration become the beneficiary at the buying bank with the letter of credit as regarding the duration when it presents that relation document, the standard point of view against the agreement yes or no with letter of credit condition of that document the beneficiary the document presentation bank which is legitimate the letter of credit decides or becomes the point of view which presents the document at the negotiating bank. Letter of credit unity rule (1993 revision) according to article 10 b clause i becomes the designation bank the free buying trust funeral case all bank could be presented the document, according to same article c clauses the designation bank agrees clearly and does not notify that designation bank receives the document in the beneficiary, investigation or it sent out, it does but at that bank now, is not the fact that the duty of undertaking or buying deferred payment and the exchange bill does not occur, when the rain loach seeing in like this regulation, from the beneficiary as the bank which is presented the letter of credit relation document oneself will reach and directness will buy and as the buying bank against the establishment bank there is a water service which a repayment will buy, that document of the as directness which does not buy that document a water service which Song as the document presentation bank for the beneficiary richly will buy the urgent of letter of credit loan at the establishment bank there is, case latter does the designation bank buys a collection in the case to which the namely establishment request person settle a loan to limit and, it will receive a loan urgently and the letter of credit unity rule must be applied with case and sameness of one electron which does not reveal the doctor clearly will.

신용장의 개설 관련 제 문제에 관한 연구

이방식(Lee, Bang Sik),박석재(Park, Suk Jae) 한국무역상무학회 2010 貿易商務硏究 Vol.46 No.-

This work intends to study some problems in relation to the issuance of letters of credit. Those problems are the delay of issuing letters of credit, the reissuing letters of credit, and the issuing letters of credit in the third party's name. Sellers and buyers must keep in mind that the supply of letter of credit by buyer is the condition precedent for a seller's shipment obligation. A seller has no obligation to ship the goods until he receives the letter of credit by buyer's bank, issuing bank. An issuing bank can have the risk that an original letter of credit and a reissued letter of credit can be used double in the exporting country. The most safe method for issuing bank is to cancel the original letter of credit and to reissue a new letter of credit. When an issuing bank issues a letter of credit in the third party's name, the bank should investigate the background of the transaction and give the buyer a proper line of credit.

전자신용장거래 당사자 간의 법률관계에 관한 연구

이제현(Lee Je-Hyun) 한국전자상거래학회 2004 전자상거래학회지 Vol.5 No.1

  본 논문은 신용장의 업무가 무역정보통신 시스템을 이용하여 추진되기 때문에 전자신용장거래 당사자 간의 새롭게 형성된 법률관게를 분석하는 것이다. 전자신용장과 전자무역계약, 무역정보통신회사간에 체결된 계약이 전자신용장거래와 관련이 있는지 또한 전자신용장의 거래절차와 개설은행의 역할 변화가 전자신용장거래 당사자 간의 법률관계에 어떠한 영향을 미치고 있는 분석하여 전자무역을 둘러싼 무역 분쟁을 방지하고 전자무역을 활성화시키는데 연구의 목적을 두었다. 본 논문의 연구결과는 다음과 같다. 첫째, 무역정보통신 시스템 사용계약은 전자무역계약에 의해서 생성되어 전자무역계약과 밀접한 법적관계를 갖고 있는 듯이 보이지만 전자무역계약과 하등의 관계가 없는 독립된 계약으로 보아야한다. 둘째, 전자신용장과 전자무역계약은 서로 독립된 관계로 보아야한다. 셋째, 전자신용장과 무역정보통신 시스템 사용계약은 상호 밀접한 법률관계가 존재하여 무역정보통신 시스템 사용계약은 전자신용장의 일부로 간주해야한다. 마지막으로 개설은행이 동시에 중간은행의 역할을 함에 따라 전자신용장거래 당사자간에 새로운 법률관계가 형성되었다.   The completion of the The completion of the UCP Supplement for Electronic Presentation (eUCP)<BR>brings the documentary credit into the electronic age." The new eUCP permits payment to made on electronic presentation. The electronic letter of credit transaction parties must consider a number of issues. The determination to use a credit allowing presentation of electronic records must be made jointly with the applicant, beneficiary, issuing bank, confirming bank of credit. The applicant must be sure that the beneficiary can present these electronic records in the format required and that this format is acceptable to the banks. The electronic letter of credit transaction parties must determine the trade information telecommunication network and enter into a contract of the trade information telecommunication network service.<BR>  The evolution to electronic presentation will undoubtedly alter the roles of many of the banks involved in on today"s paper-based credit transaction. In an electronic environment, an issuing bank is concerned with the electronic letter of credit can communicate directly with the beneficiary without the need, in many cases, for advising or nominated banks. Likewise, a beneficiary can make presentation of electronic records directly to the issuing bank without the need for negotiating or collecting banks.<BR>  The major purpose of this dissertation are to investigate the legal aspect between the electronic trade contract and the electronic letter of credit. the electronic trade contract and a contract of the trade information telecommunication network service, the electronic letter of credit and a contract of the trade information telecommunication network service, and to analyze the legal aspect of the electronic letter of credit trade parties.<BR>  The major findings of this dissertation are as follows:<BR>  First, The electronic letter of credits are separate transactions from the electronic trade contract. Second, The electronic trade contract is not concerned with the contract of the trade information telecommunication network service. Third, A contract of the trade information telecommunication network service is concerned with the electronic letter of credit. Finally, The legal aspect of the electronic letter of credit trade parties have been altered according to change of traditional role of issuing bank.<BR>

신용장의 취소 및 조건변경에 관한 연구

이방식(Lee, Bang Sik),박석재(Park, Suk Jae) 韓國貿易商務學會 2011 貿易商務硏究 Vol.50 No.-

This work intends to study some issues in relation to the cancellation and amendment of letter of credit. Those issues in relation to the cancellation are the significance and formation time of cancellation of letter of credit and some points for practical attention of UCP 600 in the case of cancellation of letter of credit. Those issues in relation to the amendment are the significance and formation requirements of amendment of letter of credit and some points for practical attention of UCP 600 in the case of amendment of letter of credit. If exporters receive letters of credit from foreign countries, they must confirm the indication of irrevocable letter of credit. When they find revocable letters of credit, they should amend the credits to be irrevocable credits. If issuing banks amend letters of credit against beneficiaries, the banks should receive the beneficiaries' consent. If amendments devalue applicants' expectations in the underlying transaction, the applicants for whom the credit issues are not liable to reimburse. Beneficiaries and issuing banks may amend a credit, but the issuing bank acts at its own peril if it does not obtain the applicant's consent.

전자신용장의 활용범위와 ‘전자화’ 정도에 대한 연구: 실무자적 관점을 중심으로

정용균,정재연 한국통상정보학회 2013 통상정보연구 Vol.15 No.2

This paper investigates the extent and scope of electronization of Letter of Credit and examines the obstacles in the course of electronization of Letter of Credit. For this purpose, this paper adopts two track methodologies. First, we study the electronization of Letter of Credit in the macro perspective. It means that we analyze the scope and the extent of electronization of electronic Letter of Credit in the national economy as a whole. Second, we utilize the case study approach to examine the electronization of Letter of Credit in micro perspective. In other words we examine individual commercial banks in Korea. For this purpose, we analyze the data from two commercial banks out of four largest domestic banks in Korea. For example, we select two commercial banks in Korea and ask current status of electronization of Letter of Credit, i.e, the utilization of EDI L/C , e-L/C, and e-B/L. A major finding of our study is that the extent of electronization is not negligible in micro perspective as well as in macro perspective. In micro perspective, two commercial banks utilize EDI letter of credit in a critical sense. On the other hand, they seldom uses e-L/C and e-B/L in international transaction. This study shows that major bottlenecks for the electronization of Letter of Credit are pessimistic perception of SME entrepreneurs toward the electronization of Letter of Credit and the high costs of system building. We conclude that unlike superficial perception, there is a considerable progress toward the electronization of Letter of Credit in micro perspective. 본 연구는 전자신용장의 활용범위와 전자화 정도에 대하여 연구한 논문이다. 이를 위하여 본 연구는 두 가지 방법론을 활용하였다. 첫째, 우리나라 국민경제 전체의 거시적 차원에서 전자신용장의 전자화 정도를 분석하였다. 둘째, 신용장결제방식에 결정적인 역할을 수행하는 개별 은행들을 선정하고, 이들 개별은행의 미시적 차원에서 전자신용장의 활용과 전자화정도를 분석하였다. 본 연구는 국내 4대 시중은행 중 두 곳에서 자료를 받아 분석하였다. 전자신용장의 활용정도를 분석하기 위한 지표로는 EDI신용장과 e-L/C, 그리고 전자선하증권을 기준으로 하였다. 연구결과 e-L/C와 e-B/L은 활용도가 매우 미미하게 나타났으나, EDI신용장의 경우는 거시적 차원이나 미시적 차원 모두에서 상당히 활용되고 있는 것으로 나타났다. 한편 중소기업 차원에서 신용장의 전자화를 촉진하기 위해서는 시스템 구축비용을 지원하는 것이 필요한 것으로 분석된다.

한국과 중국 신용장 관련 규정의 비교연구

박석재 한국무역경영학회 2024 한국무역경영연구 Vol.- No.34

한국과 중국의 신용장 규정의 차이는 한국은 신용장과 관련한 법률이 없으며, 신용장 거래 시 세계적인 준거법으로 이용되고 있는 국제상업회의소(ICC)가 제정한 신용장 통일규칙(UCP 600)에 준거하여 신용장 거래를 수행하고 있다. 반면 중국은 신용장에 관한 성문법은 없으나 중국 최고인민법원이 공포한 “최고인민법원의 신용장 분쟁사건 심리에 관한 약간의 문제에 관한 규정”을 2006년 1월 1일부터 시행하고 있다. 신용장 거래 시 한국이 준거법으로 삼고 있는 신용장 통일규칙(UCP 600)과 중국이 준거법으로 삼고 있는 동‘규정’은 서류의 심사표준 및 개설은행의 불일치 서류에 대한 처리방식에서 차이가 있으므로 주의가 필요하다. 또한 한국과 중국의 내국신용장 규정은 법적 근거 및 규제 환경, 운용 관행, 서류 절차 및 기술적 측면에서 차이가 있으며, 은행의 신용장 내부규정은 규제 환경, 문서 처리 및 심사 절차, 은행 내규 및 관행, 기술적 측면 등에서 차이가 있다. 한국과 중국의 신용장 규정은 차이가 있으므로 한국의 무역업자 및 은행들이 중국과 신용장 거래를 수행하는 경우에는 그 차이점을 인지하고 실무 거래 시 유의하여야 예상치 못한 위험을 회피할 수 있다. 특히 중국은 자본주의 경제를 도입한지 얼마 되지 않아 세계적인 게임의 규칙에 따르지 않고 중국 특유의 사회주의적 관행이 있으므로 실무상 주의가 필요하다. This study aims to compare the letter of credit regulations between Korea and China to provide practical guidelines for Korean traders and banks when engaging in letter of credit transactions with China. Firstly, the difference in the letter of credit regulations between the two countries is that Korea does not have specific laws related to letters of credit. Instead, it adheres to the Uniform Customs and Practice for Documentary Credits(UCP 600) established by the International Chamber of Commerce (ICC) as a global governing law for conducting letter of credit transactions. On the other hand, China does not have a formal law for letters of credit, but it has been implementing the "Rules of the Supreme People’s Court on Some Issues Concerning the Trial on the Disputed Cases over the Letter of Credit of China" since January 1, 2006. These "Rules" consisting of 18 articles, provide a legal basis for letter of credit transactions and serve as an important guideline for judges in case of disputes related to letters of credit. There are differences in the standards for document examination and the handling of discrepant documents by the issuing banks between Korea’s UCP 600 and China’s "Rules", which require attention. Additionally, there are differences in the bill of exchange laws and related regulations. For instance, Article 8 of China’s bill of exchange law requires the consistency of the amount in words and figures, whereas in Korea, even if there is a discrepancy, the bill of exchange is still valid, prioritizing the amount in words. The local letter of credit regulations in Korea and China differ in terms of legal basis, regulatory environment, operational practices, documentation procedures, and technical aspects. Similarly, the internal regulations of banks regarding letters of credit vary in regulatory environment, document processing, review procedures, internal rules, practices, and technical aspects. Given these differences, it is crucial for Korean traders and banks to be aware of and heed these discrepancies when conducting letter of credit transactions with China to avoid unforeseen risks.

신용장거래(信用狀去來)에 있어서 Fraud Rule

정찬형 ( Chan Hyung Chung ) 고려대학교 법학연구원 2007 고려법학 Vol.0 No.49

1. Letters of credit, by their nature, are separate transaction from sales or other contract(s) on which may be based and banks are in no way concerned with or bound by such contract(s), even if any reference whatsoever to such contract(s) is included in the letters of credit[Uniform Costoms and Practice for Documentary Credits(UCP) § 3 a.]. But it is against justice as well as against purpose of letters of credit that the issuing bank of letters of credit shall honor a presentation of false or fraudulent documents for the beneficiary`s abusing the above mentioned nature of letters of credit. Therefore, the fraud rule is regulated in American Uniform Commercial Code(UCC) § 5-109. Namely, if a presentation is made that appears on its face strictly to comply with the terms and conditions of letters of credit, but a required document is forged or materially fraudulent or honor of the presentation would facilitate a material fraud by the beneficiary on the issuer of applicant, the issuer in principle shall not honor the presentation. And in this case a court may temporarily or permanently enjoin the issuer from honoring a presentation or grant similar relief against the issuer or other persons. 2. In Korea, even though there is no regulation equivalent to UCC § 5-109, courts decide equally on same or similar cases by using good faith rule or no abuse of rights rule(Korean Civil Code § 2). 3. In order to apply the fraud rule to individual case, the followings are required : (1) a beneficiary should commit fraud(this fraud includes fraud in the underlying transaction as well as the fraud in the documents), (2) the burden to prove the fraud remains on the applicant(this fraud must be material under the UCC), (3) the issuer always should honor a presentation to a good faith purchaser(holder in due course) of letters of credit. 4. It will make persons avoid the use of letters of credit for fraud rule to be applied so often, while it will be against justice for fraud rule to be adopted rarely. Therefore, it is absolutely necessary for courts to apply fraud rule to individual case harmonizing with the nature of letters of credit.